10 Things to Know About Impact Investing
Author: Larry Hardy, Updated on 12/13/2023 12:50am
10 Things to Know About Impact Investing

7. Impact Investing & Social Enterprises

Social impact investing can be used to support social enterprises and other impact-focused businesses. By focusing on impact investments, investors are able to help these organizations grow and scale in order to have a positive impact on the world. Social impact investments can also help create jobs and economic growth in underserved communities, which can have a ripple effect on poverty reduction. Additionally, impact investing can support the development of clean energy sources, the adoption of new technology, and the protection of vulnerable ecosystems.

In addition to providing financial returns, impact investments also allow investors to align their investments with their personal goals, values and impact areas. By investing in impact projects that focus on the issues they care about, investors can make a tangible impact on the world while seeing a return on their investments.

 

8. Impact Investing & Sustainable Development Goals

Impact investing can be used to help achieve the United Nations’ Sustainable Development Goals (SDGs). These goals are intended to address global challenges such as poverty, inequality and climate change. By focusing on impact investments that are aligned with these goals, investors can have a positive impact on society while also achieving financial returns. To learn more about impact investing and how it can help to achieve the SDGs, investors should research impact investment options in their area and speak with experts in the field.

When selecting impact investments, investors should consider factors such as environmental impact, social impact and financial performance. Impact investments that support sustainable development goals often feature both positive environmental outcomes (e.g. renewable energy projects) and positive social outcomes (e.g. job creation in low-income communities). By carefully evaluating impact investments, investors can have a positive impact on the world while also earning a financial return.